Myriad Genetics ((MYGN)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Myriad Genetics’ recent earnings call conveyed a generally positive sentiment, underscored by robust revenue growth, profitability, and strategic partnerships. Despite challenges, such as UnitedHealthcare’s coverage decision impacting GeneSight and issues in prenatal testing, the company demonstrated confidence by raising its guidance for 2025, signaling a strong strategic direction.
Revenue Growth and Profitability
Myriad Genetics reported a revenue of $213 million, marking a 5% increase year-over-year, excluding specific factors. The company achieved a strong adjusted gross margin of 71.5%, a 140 basis point increase from the previous year, and an adjusted EBITDA of $14.5 million, reflecting a 24% growth over last year. These figures highlight the company’s solid financial performance and operational efficiency.
Positive Developments in Oncology and Hereditary Cancer Testing
The earnings call highlighted significant advancements in oncology and hereditary cancer testing. MyRisk HCT in oncology experienced a 14% volume growth year-over-year, while hereditary cancer revenue grew by 5% for the quarter. The oncology channel saw a 10% volume growth year-over-year, underscoring the company’s strong position in these critical areas.
Strategic Partnerships and Product Development
Myriad Genetics announced a strategic partnership with PATHOMIQ to enhance prostate cancer testing and secured a $200 million term loan from OrbiMed. The company is also preparing for the early access launch of the Precise MRD test in the first half of 2026, indicating a focus on innovation and expansion in its product offerings.
Impact of UnitedHealthcare Coverage Decision
The coverage decision by UnitedHealthcare negatively impacted GeneSight revenue, which declined by 12% year-over-year. This challenge highlights the external factors affecting the company’s performance in certain segments.
Challenges in Prenatal Testing
The company faced challenges in its prenatal testing segment, with a 7% decline in volume for legacy products Prequel and Foresight. These issues were attributed to the implementation of an order management system, which has since been resolved, suggesting potential for recovery in this area.
Goodwill and Intangibles Impairment
Myriad Genetics recognized impairment charges of $317 million related to goodwill and intangibles, driven by a significant and prolonged decline in market capitalization. This reflects the financial adjustments the company is making in response to market conditions.
Increased Guidance for 2025
The company raised its full-year revenue guidance to between $818 million and $828 million and increased its gross margin range to between 69.5% and 70%. Adjusted EBITDA guidance was also raised to between $27 million and $33 million. These adjustments reflect Myriad’s confidence in its strategic initiatives and its optimistic outlook for future growth.
In conclusion, Myriad Genetics’ earnings call reflected a positive sentiment, driven by strong financial performance and strategic advancements, despite facing certain challenges. The company’s raised guidance for 2025 further underscores its confidence in maintaining momentum and achieving continued growth.